In a country as vast as Australia, travelling for business is often a necessity. Roy Morgan Research [2014] found that in the 12 months between September 2013 and 2014, 11% of the population took at least one flight for domestic business travel. That’s a staggering 2,101,000 people. On top of this, the Australian Bureau of Statistics estimated approximately 10% of Australians travelled abroad on business in 2012.
Travel has clearly become an essential part of the lives of most C-Suite level managers, and many of their subordinates and as such, business travel insurance is also a necessity.
What Situations May A Business Travel Policy Cover?
Business Travel Insurance will provide cover for a broad range of business trips. Depending on the type of cover you choose, the following circumstances may be covered:
- Business trips to visit clients and suppliers
- Business trips to attend conferences and seminars
- Incidental leisure travel, for example, a stop-over on the way home from a business trip
Who May be Covered By Business Travel Insurance?
Depending on the type of cover you select, Business Travel Insurance may cover the following people:
- Directors and senior managers (as defined in the policy)
- Their spouse and any dependent children travelling with them
- Other additional nominated employees (as defined in the policy)
What Risks Are Associated with Business Travel?
During travel, employees are exposed to a number of risks that they wouldn’t normally face in the office, and expenses can accumulate quickly when things don’t run smoothly.
Some of the main risks to travellers include:
- Medical Emergencies & Evacuation: If an employee becomes ill or is injured when they are travelling, hospital costs can quickly add up. In the event that emergency transport home for treatment (medical evacuation) is necessary, this can be even more expensive.
- Trip Cancellation or Early Return: Sometimes trips have to be cancelled at the last minute due to illness, an accident or the death of a close relative. In most cases, these trips will not be refunded and the business may be left out of pocket.
- Loss of Baggage & Personal Belongings: Employees often have to carry expensive items such as laptops and mobile phones on business trips. All too often, these items can be lost or damaged in transit, which can result in significant replacement costs.
- Transport Cancellation: Circumstances that are out of your control, such as extreme weather conditions, employee strikes and environmental disasters can lead to the cancellation of travel by the provider. This can result in an employee being stranded on location, or unable to make their trip.
Business Travel Insurance may help to cover the costs incurred as a result of these situations.
Speak to PSC Insurance Brokers for more information on covering yourself or your employees during travel.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
